Much hype has been made over how much “Obamacare” is going to cost Americans. The Republicans and, dare I say, the majority of Americans believe it will significantly increase the cost of insurance for people who buy it on their own. The Democrats have been quick to dismiss any such silly notions.
1. Title: Obamacare a Boon for Biotechs?
Author: John Whitefoot, http://www.dailygainsletter.com/
Body
Much hype has been made over how much “Obamacare” is going to cost Americans.
The Republicans and, dare I say, the majority of Americans believe it will significantly
increase the cost of insurance for people who buy it on their own. The Democrats
have been quick to dismiss any such silly notions.
Slugging through the 3,256 pages that make up the Patient Protection and Affordable
Care Act isn’t an option for most sentient beings, but, in a nutshell, the act is aimed at
increasing health insurance coverage for Americans, while at the same time reducing
the overall costs of healthcare.
Although Obamacare doesn’t come into effect until January 1, 2014, some numbers are beginning to
trickle in. Now granted, I don’t think anyone ever believes the cost savings or cost overrun numbers
handed out by either party; after all, both have their own agendas. At the same time, you’d like to think
the numbers will be somewhat accurate.
President Obama promised that premiums would decrease for those who already have insurance. This
is not so. According to preliminary data from the Ohio Department of Insurance, the average individual-
market health insurance premium will increase 88% year-over-year to approximately $420.00 in 2014.
(Source: “Health Insurance Costs to Increase Significantly Under Affordable Care Act,” Ohio
Department of Insurance web site, June 6, 2013.)
Last month, California said its new insurance exchange would be cheaper in 2014 than it is today,
falling anywhere from two percent above to 29% below the current market. Although, upon closer
inspection, it was revealed that the report wasn’t really comparing apples to apples so much as apples
to orchards. Others suggest that some premiums will go up more than 100%.
We are still half a year away from the implementation of so-called Obamacare, so it’s impossible to
really say what it will really cost us. What we can bank on, however, is that there will be turbulence. But
whether it’s the Grand Canyon, a supernova, or something in between is anyone’s guess.
One (so far untested) section of Obamacare that is expected to create a $20.0-billion-a-year market
that should benefit the average American investor is the Biologics Price Competition and Innovation
Act. Through this law, biotech companies can now begin creating drugs similar to big-name biologics.
This emerging breed of drugs is called “biosimilars,” and they could represent some of the biggest,
steadiest streams of profits investors will ever see.
Unlike standard over-the-counter drugs like aspirin, which are chemically synthesized by mixing
different compounds, biologics are actually made inside the cell of a living organism through the
“biologic process.”